Solution.

Decision Variable.

X1 : Barrels /day of crude1
X2 : Barrels/ day of crude 2

Objective function

Maximize profit = Income-raw material cost-processing cost

X3 = barrels/day of gasoline
X4 = barrels/day of kerosene
X5 = barrels/day of fuel oil
X6 = barrels/day of tar.

Income = 3500 X3 + 2500 X4 + 2100 X5 + 1000 X6
Raw Material Cost = 2000 X1 + 1500 X2
Processing Cost = 500 X1 + 1000 X2

Given the yield for both the crude oil we can write

X3= 0.7 X1 + 0.55 X2
X4= 0.15 X1 + 0.2 X2
X5= 0.1 X1 + 0.15 X2
X6= 0.05 X1 + 0.1 X2

So we can rewrite the whole formulation as

Maximize 2450 X1 + 1925 X2 + 375 X1 + 500 X2 + 210 X1 + 315 X2 + 50 X1 +
100 X2 -2000 X1 1500 X2 500 X1 1000 X2

Maximize 585 X1 + 340 X2

Constrains

X3 = 0.7 X1 + 0.55 X2 24000
X4 = 0.15 X1 + 0.2 X2 6000
X5 = 0.1 X1 + 0.15 X2 2000
X1 0
X2 0